Cardano Price Analysis: ADA Slips Below $1.20 After Significant Drop 

Daily Cardano ADA Price Forecast

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Last Updated January 7th 2022
3 Min Read
  • The Cardano price fell back by over 2% during the current session, slipping below $1.20. 
  • ADA has been extremely bearish during the week and had dropped by over 6% on Wednesday. 

The Cardano price has been extremely bearish during the week, with the current session seeing ADA down by over 2%, with sellers in control. ADA had started the week in the red, falling by 4.21% and slipping below the 20-day SMA on Monday. ADA continued to drop on Tuesday, registering a marginal drop of 0.83. Wednesday saw a significant fall, as sellers pushed ADA down by over 6%, with the price settling at $1.22. The current session sees ADA fluctuating between $1.19 and $1.20. 

Cardano Price Chart Indicates ADA Could Find Support At $1.20 

The Cardano price started the previous week on a fairly positive note, rising over 4% on Monday. The price fell in the red on Tuesday, dropping by nearly 8% and settling at $1.39. ADA continued to drop on Wednesday, falling by 4.86% and settling at $1.33. The 20-day SMA was acting as support at this level, and ADA recovered on Thursday, rising over 2% on Thursday, moving to $1.35. However, the price fell back in the red on Friday, slipping below the 20-day SMA and settling at $1.30.

Image: ADA/USD daily  

ADA/USD daily chart 010722

After dropping to $1.30 on Friday, the Cardano price made a strong recovery on Saturday, rising by over 5%, pushing back above the 20-day SMA, and settling at $1.37. However, the price fell back on Sunday, registering a marginal drop. Monday saw ADA slip back below the 20-day SMA, falling by 4.21% and settling at $1.32. The price registered a marginal drop on Tuesday before falling over 6% on Wednesday and dropping to $1.22. The current session sees ADA at $1.20, with sellers looking to push the price lower.

The MACD and Parabolic SAR have flipped to bearish, indicating that the price could drop further.

Looking at IntoTheBlock’s IOMAP for the Cardano price, we see that ADA faces strong resistance at around $1.33. At this price level, over 274,000 addresses have sold more than 4.8 billion ADA.

Image: IntoTheBlock

ADA/USD volume chart 010722

The 4-hour Cardano price chart shows us that ADA had dropped by over 5% on the 31st, falling to $1.28. The price made a strong recovery from this level, pushing above the 20-bar SMA on the 1st and moving to $1.37. At this level, the 200-bar SMA was acting as resistance, and ADA was unable to move past the 200-bar SMA. However, with the 20-bar SMA acting as support, ADA was able to stay at this level until the 3rd, when the price slipped below the 20-bar SMA and slipped to $1.31. ADA pushed up from this level, rising to $1.34 and then falling to $1.30. ADA pushed up to $1.34 on the 5th but then turned bearish, dropping to $1.25 and then dropping to its current level of $1.19.

We can see that the MACD and Parabolic SAR are bearish, indicating that the price could drop further.

Image: ADA/USD 4-hour 

ADA/USD 4-hour chart 010722

Cardano Price Is Expected To Reach These Levels 

The Cardano price has been extremely bearish during the week. However, there are levels of support present at $1.19 and $1.20, and we could see ADA post a marginal recovery from these levels.